A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return...

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Finance

A stock's returns have the following distribution:
Demand for the
Company's Products Probability of This
Demand Occurring Rate of Return If
This Demand Occurs
Weak 0.2 (42%)
Below average 0.2 (6)
Average 0.3 13
Above average 0.1 22
Strong 0.2 47
1.0
Assume the risk-free rate is 2%. Calculate the stock's expectedreturn, standard deviation, coefficient of variation, and Sharperatio. Do not round intermediate calculations. Round your answersto two decimal places.
Stock's expected return:   %
Standard deviation:   %
Coefficient of variation:
Sharpe ratio:

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Transcribed Image Text

A stock's returns have the following distribution:Demand for theCompany's ProductsProbability of ThisDemand OccurringRate of Return IfThis Demand OccursWeak0.2(42%)Below average0.2(6) Average0.313 Above average0.122 Strong0.247 1.0Assume the risk-free rate is 2%. Calculate the stock's expectedreturn, standard deviation, coefficient of variation, and Sharperatio. Do not round intermediate calculations. Round your answersto two decimal places.Stock's expected return: %Standard deviation: %Coefficient of variation:Sharpe ratio:

Demand for the Company's Products	Probability of This Demand Occurring	Rate of Return If This Demand Occurs
Weak	0.2	(42%)
Below average	0.2	(6)
Average	0.3	13
Above average	0.1	22
Strong	0.2	47
	1.0